Issued $400 million of 5 year notes, $300 million of 3 year notes and
borrowed $350 million in term loans.

The Company redeemed its September 2017 notes for $385 million. In
October 2017, the Company also redeemed its May 2018 notes for $350
million.

“Our third quarter revenue performance was largely in-line with our
expectations; however our bottom line results fell short as we continued
to realign our businesses to higher growth areas and invest in new
business opportunities, products and solutions,” said Marc B.
Lautenbach, President and CEO, Pitney Bowes. “During the third quarter,
we validated that the next chapter of revenue growth will come from
shipping, parcels and address verification, all of which transcends our
entire business. And while I was disappointed in our financial results
in the third quarter, I am encouraged about our path forward as we
continue to transform our company.”

Lautenbach continued: “We have made substantial progress against our
strategic objectives over the past four years and remain committed to
improving margins and driving efficiencies throughout the business by
deploying a $200 million spend reduction program. The recent acquisition
of Newgistics repositions the portfolio towards growth. With the Board
of Directors and management team continuing to focus on enhancing
shareholder value, we believe now is the time to explore a broad range
of strategic alternatives that may have the potential to further unlock
shareholder value.”

Third Quarter 2017 Results

Revenue totaled $843 million for the quarter, which was flat versus
prior year.

GAAP earnings per diluted share (GAAP EPS) were $0.31, which included
$0.02 for transaction costs related to the Newgistics acquisition as
well as $0.01 for restructuring charges. Adjusted earnings per diluted
share (Adjusted EPS) were $0.33.

The Company’s earnings per share results for the third quarter are
summarized in the table below:

Third Quarter*

2017

2016

GAAP EPS

$0.31

$0.35

Transaction costs

$0.02

-

Restructuring charges and asset impairments, net

$0.01

$0.06

Tax adjustment – preferred stock redemption

-

$0.03

Adjusted EPS

$0.33

$0.44

* The sum of the earnings per share may not equal the totals above
due to rounding.

GAAP Cash from Operations and Free Cash Flow Results

GAAP cash from operations during the quarter was $146 million and free
cash flow was $109 million. Compared to the prior year, free cash flow
decreased by $11 million primarily due to lower net income offset by
favorable working capital, specifically within accounts payable and
accrued liabilities. During the quarter, the Company used cash to pay
down $385 million of debt, return $35 million in dividends to
shareholders and pay $11 million for restructuring payments.

Debt Management

During the quarter, the Company issued $400 million 5 year fixed rate
notes, $300 million 3 year fixed rate notes and borrowed $350 million in
term loans. The Company used these proceeds together with cash on-hand
to fund the Newgistics acquisition and redeem $385 million notes due
September 2017. In October 2017, the Company also redeemed the $350
million notes that would have come due in May 2018.

Third Quarter 2017 Business Segment Reporting

The Company’s business segment reporting reflects the clients served
in each market and the way it manages these segments.The
reporting segment groups are the SMB Solutions group; the Enterprise
Business Solutions group; and the Digital Commerce Solutions group.The
segment results for the quarter and prior year may not equal the
subtotals for each segment group due to rounding.

The SMB Solutions group offers mailing and office shipping solutions,
financing, services, and supplies for small and medium businesses to
help simplify and save on the sending, tracking and receiving of
letters, parcels and flats. This group includes the North America
Mailing and International Mailing segments.

The Enterprise Business Solutions group includes the global
Production Mail and Presort Services segments. Production Mail provides
mailing and printing equipment and services for large enterprise clients
to process mail.Presort Services provides sortation services to
qualify large mail and parcel volumes for postal worksharing discounts.

The Company successfully launched the new SendPro C-Series product line
in early September, and as such recognized less than a month of
equipment sales from this new product during the quarter. Equipment
sales declined largely due to lower sales in the top of the line
products, where prior year included a large deal, and this year, a few
deals did not close in the quarter. In addition, North America Mailing
realized a lower level of client lease extensions, which impacted
equipment sales. Recurring revenue streams declined, largely around
lower rentals and financing revenue. EBIT margin was lower than prior
year largely due to the decline and mix of equipment sales along with
the decline in recurring streams.

International Mailing

Revenue declined largely due to lower recurring revenue streams.
Equipment sales were relatively flat driven by growth in France and the
UK, and offset primarily by weakness in Italy and Japan. EBIT margin
decreased slightly from prior year.

Enterprise Business Solutions Group

($ millions)

Third Quarter

Revenue

2017

2016

Y/YReported

Y/YEx Currency

Production Mail

$104

$106

(2

%)

(3

%)

Presort Services

119

114

4

%

4

%

Enterprise Business

$223

$220

1

%

1

%

EBIT

Production Mail

$15

$16

(5

%)

Presort Services

19

19

2

%

Enterprise Business

$34

$35

(1

%)

Production Mail

Equipment sales declined versus prior year largely due to lower inserter
equipment placements, which were partially offset by higher print
equipment sales. Support services revenue was slightly favorable, but
offset by a decline in Supplies revenue. EBIT margin declined from prior
year primarily as a result of the decline in revenue and the mix of
equipment sales.

Presort Services

Revenue growth was driven by improved revenue per piece along with
higher Standard Class mail and Parcel volumes processed, but partly
offset by lower First Class mail volumes. EBIT margin declined slightly
from prior year driven by increased mail processing costs and
investments in the Company’s new parcel sortation capabilities.

Digital Commerce Solutions Group

($ millions)

Third Quarter

Revenue

2017

2016

Y/YReported

Y/YEx Currency

Software Solutions

$99

$89

12

%

11

%

Global Ecommerce

106

83

28

%

28

%

Digital Commerce

$206

$172

19

%

19

%

EBIT

Software Solutions

$21

$10

> 100

%

Global Ecommerce

(10

)

2

> (100

%)

Digital Commerce

$11

$12

(5

%)

Software Solutions

Revenue growth was driven by higher license revenue, primarily in
Location Intelligence and Customer Information Management. License
revenue also benefited from a large Location Intelligence deal that
closed in the quarter. The Company is continuing to see progress in
developing the indirect channel which showed solid growth. EBIT margin
increased from prior year largely driven by the higher licensing revenue.

Global Ecommerce

The sustained double-digit revenue growth was driven by strong
performance in all of the cross-border geographies, as well as growth in
domestic shipping. The domestic shipping increase is driven by
end-to-end carrier services enabled by the Company’s shipping API’s. The
EBIT loss was driven primarily by investments in market growth
opportunities as well as the resolution of a vendor contractual dispute
and a specific marketing program with a cross-border client. The Company
continues to invest in its cross-border solutions and domestic shipping
capabilities.

2017 Guidance

The Company is increasing its annual guidance range for revenue and
lowering its annual guidance range for adjusted EPS and free cash flow.

The Company’s guidance for the full year 2017 is now expected to be:

Revenue, on a constant currency basis, to be in the range of 3 percent
to 5 percent growth, when compared to 2016. This has been updated from
the previous range of flat to 1 percent as a result of the revenue
expected from Newgistics in the fourth quarter.

Adjusted EPS to be in the range of $1.38 to $1.46. This has been
updated from the previous range of $1.70 to $1.78.

Free cash flow to be in the range of $350 million to $380 million.
This has been updated from the previous range of $400 million to $430
million.

The Company is lowering its annual tax range on adjusted earnings. The
Company now expects to be in the range of 28 percent to 30 percent as
compared to the previous range of 31 percent to 33 percent.

This guidance discusses future results, which are inherently subject
to unforeseen risks and developments.As such, discussions about
the business outlook should be read in the context of an uncertain
future, as well as the risk factors identified in the safe harbor
language at the end of this release and as more fully outlined in the
Company's 2016 Form 10-K Annual Report and other reports filed with the
Securities and Exchange Commission.

This guidance excludes any unusual items that may occur or additional
portfolio or restructuring actions, not specifically identified, as the
Company implements plans to further streamline its operations and reduce
costs. Revenue guidance is provided on a constant currency basis. The
Company cannot reasonably predict the impact that future changes in
currency exchange rates will have on revenue and net income.
Additionally, the Company cannot provide GAAP EPS and GAAP cash from
operations guidance due to the uncertainty of future potential
restructurings, goodwill and asset write-downs, unusual tax settlements
or payments and contributions to its pension funds, acquisitions,
divestitures and other potential adjustments, which could (individually
or in the aggregate) have a material impact on the Company’s
performance. The Company’s guidance is based on an assumption that the
global economy and foreign exchange markets in 2017 will not change
significantly.

Review of Strategic Alternatives

The Pitney Bowes Board of Directors, together with management, is
conducting a process to explore and evaluate strategic alternatives to
further enhance shareholder value. The Board has not set a timetable for
the process nor has it made any decisions related to any strategic
alternatives at this time. There can be no assurance that the
exploration of strategic alternatives will result in any particular
outcome. The Company does not intend to provide updates unless or until
it determines that further disclosure is appropriate or necessary.

The company has retained Lazard as its financial advisor and Cravath,
Swaine & Moore LLP as its legal advisor to assist in the process.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a
broadcast over the Internet today at 8:00 a.m. ET. Instructions for
listening to the earnings results via the Web are available on the
Investor Relations page of the Company’s web site at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE:PBI) is a global technology company powering billions
of transactions – physical and digital – in the connected and borderless
world of commerce. Clients around the world, including 90 percent of the
Fortune 500, rely on products, solutions, services and data from Pitney
Bowes in the areas of customer information management, location
intelligence, customer engagement, shipping, mailing, and global
ecommerce. And with the innovative Pitney Bowes Commerce Cloud, clients
can access the broad range of Pitney Bowes solutions, analytics, and
APIs to drive commerce. For additional information visit Pitney Bowes,
the Craftsmen of Commerce, at www.pitneybowes.com.

Use of Non-GAAP Measures

The Company's financial results are reported in accordance with
generally accepted accounting principles (GAAP); however, in our
disclosures we use certain non-GAAP measures, such as adjusted earnings
before interest and taxes, Adjusted EPS, revenue growth on a constant
currency basis, free cash flow and Segment EBIT.

The Company reports measures such as adjusted earnings before
interest and taxes (EBIT) and Adjusted EPS and adjusted income from
continuing operations to exclude the impact of special items like
restructuring charges, tax adjustments, goodwill and asset write-downs,
and costs related to dispositions and acquisitions.While these
are actual Company expenses, they can mask underlying trends associated
with its business.Such items are often inconsistent in amount
and frequency and as such, the adjustments allow an investor greater
insight into the current underlying operating trends of the business.

In addition, revenue growth is presented on a constant currency basis
to exclude the impact of changes in foreign currency exchange rates
since the prior period under comparison.Constant currency
measures are intended to help investors better understand the underlying
operational performance of the business excluding the impacts of shifts
in currency exchange rates over the period.Constant currency is
calculated by converting our current quarter reported results using the
prior year’s exchange rate for the comparable quarter.This
comparison allows an investor insight into the underlying revenue
performance of the business and true operational performance from a
comparable basis to prior period.A reconciliation of reported
revenue to constant currency revenue can be found in the Company’s
attached financial schedules.

The Company reports free cash flow in order to provide investors
insight into the amount of cash that management could have available for
other discretionary uses.Free cash flow adjusts GAAP cash from
operations for capital expenditures, restructuring payments, unusual tax
settlements, contributions to the Company’s pension fund and cash used
for other special items.A reconciliation of GAAP cash from
operations to free cash flow can be found in the Company’s attached
financial schedules.

In addition, Management uses segment EBIT to measure profitability
and performance at the segment level.Segment EBIT is determined
by deducting from revenue the related costs and expenses attributable to
the segment.Segment EBIT excludes interest, taxes, general
corporate expenses not allocated to a particular business segment,
restructuring charges and goodwill and asset impairments, which are
recognized on a consolidated basis.A reconciliation of Segment
EBIT to the Company’s total Net Income can be found in the Company’s
attached financial schedules.

Pitney Bowes has provided a quantitative reconciliation to GAAP in
supplemental schedules. This information may also be found at the
Company's web site www.pb.com/investorrelations

This document contains “forward-looking statements” about the
Company’s expected or potential future business and financial
performance. Forward-looking statements include, but are not limited to,
statements about its future revenue and earnings guidance and other
statements about future events or conditions, including statements about
the potential outcome of the Board’s exploration of strategic
alternatives.Forward-looking statements are not guarantees of
future performance and involve risks and uncertainties that could cause
actual results to differ materially from those projected. These risks
and uncertainties include, but are not limited to: the announcement that
the Board is conducting a review of strategic alternatives and the
potential impact of such announcement on the Company’s current or
potential customers, partners and personnel? the cost of the review
process and the disruption the process may have on the Company’s
operations, including the diversion of the attention of the Company’s
management and employees? declining physical mail volumes; competitive
factors, including pricing pressures, technological developments, the
introduction of new products and services by competitors, and fuel
prices; our success in developing new products and services, including
digital-based products and services, obtaining regulatory approvals, if
needed, of new products if required, and the market’s acceptance of
these new products and services; our ability to fully utilize the
enterprise business platform in North America implemented in 2016, and
successfully deploy it in major international markets without
significant disruptions to existing operations; a breach of security,
including a cyberattack or other comparable event; the continued
availability and security of key information technology systems and the
cost to comply with information security requirements and privacy laws;
changes in postal or banking regulations; the risk of losing large
clients in the Global Ecommerce segment; macroeconomic factors,
including global and regional business conditions that adversely impact
customer demand, foreign currency exchange rates, interest rates and
labor conditions; capital market disruptions or credit rating downgrades
that adversely impact our ability to access capital markets at
reasonable costs;management of outsourcing arrangements;
integrating newly acquired businesses, including operations and product
and service offerings; management of customer credit risk; and other
factors beyond its control as more fully outlined in the Company's 2016
Form 10-K Annual Report and other reports filed with the Securities and
Exchange Commission.Pitney Bowes assumes no obligation to update
any forward-looking statements contained in this document as a result of
new information, events or developments.

Note: Consolidated statements of income; revenue and EBIT by business
segment; and reconciliation of GAAP to non-GAAP measures for the three
months and nine months ended September 30, 2017 and 2016, and
consolidated balance sheets as of September 30, 2017 and December 31,
2016 are attached.

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